TASE to begin testing of new derivatives trading system

Preparations for computerized trading in derivatives, scheduled tobegin on October 17 1999, are well underway. Software programs for derivatives trading are now at the final stages of development, and TASE's Computers and Operations department will commence internal testing of the systems within the coming weeks. Installation of the new computer equipment has been completed and comprehensive system testing with all stock exchange members are planned for early June. Currently, options and futures on the TA-25 index and the dollar's exchange rate are traded in the open outcry method. The new development will enable investors to trade these derivatives via the computerized TACT (Tel Aviv Continuous Trading) system, which is presently used for shares, bonds and T-bills. Once the system is in operation, the TASE will become one of the few stock exchanges in the world with integrated systems for both cash and futures markets. TASE's Executive Vice President, Head of Computers and Operations Department, Ester Levanon, said that "stock exchange staff and members are making every effort to ensure that the TACT-Derivatives system is launched on time". Levanon added that the stock exchange has completed its Y2K preparations and is therefore able to devote all of its resources to computerizing derivatives trading. Along with trading systems'improvements, foreign investors continue to increase their holdings in TASE traded companies. Last week, Goldman Sachs purchased a 2 percent block of Bank Hapoalim shares for USD59 million. The parliament's Finance Committee approved the sale of up to 8 percents of the bank's shares in 1999. During the past year, the government sold blocks of both Bank Hapoalim and Bank Leumi shares for a total of USD260 million. The Tel-Aviv Stock Exchange (TASE) was founded in 1953. The Exchange is owned by its 28 member firms and is closely supervised by the Israel Securities Authority, whose main mission is protecting investors. The TASE provides highly-advanced fully-electronic trading services for shares, bonds and Treasury-bills and it operates two trading floors for derivatives. All trades are cleared and settled by the TASE clearing House. The TASE offers the international investor the appealing combination of attractive investment opportunities and developed market services. Visit the TASE Web site today, at www.tase.co.il